Fancy a fuel tax holiday?

* US governors propose fuel tax break
* Tax in UK to go up another 2p in October
* UK motorists pay 690% more tax than US...

Jim Holder

08 May 2008

Rising fuel prices aren't just a British problem, they're a global one. While our MPs appear to be looking on as prices climb to record levels, though, their American counterparts are coming up with innovative ideas to help motorists out.

The average price of unleaded in the UK is currently 502.12p a gallon. Although that's sky-high compared with the average American cost of $3.62 (184.6p), it seems politicians from across the Atlantic are far more inclined to make a stand.

The governor of Florida, for instance, has proposed that the state doesn't take any tax during a two-week period in July, an idea mirrored in Missouri, New York and Texas, where a summer tax 'holiday' is being proposed.

'It's about trying to understand and serve the people, and care about what they're dealing with at the kitchen table,' said Charlie Crist, governor of Florida.

Fuel in the USA is taxed at 18.4 cents (9.5p) a gallon by central government, as well as a levy set individually by each state that can be as much as 45.5 cents (23.6p).

However, that means a maximum of 33.1p of tax per gallon, which compares with the UK tax rates of 228.59p per gallon (50.35p a litre) of unleaded petrol - meaning UK petrol buyers are paying 690% more tax than their American counterparts.

Furthermore, UK tax rates are set to rise by another 2p a litre this October.